10 Predictions for the Global Orthopedic Device Market

Spinal Tech

The global orthopedic device market is expected to grow over the next five years, according to a new report from Transparency Market Research.

Here are 10 key takeaways from the report:

 

1. The global orthopedic device market was valued at $29.2 billion in 2012 and is expected to reach $41.2 billion by 2019. The market is expected to grow at a compound annual growth rate of 4.9 percent over the next five years, according to the Transparency Market Research report. Frost & Sullivan research estimates the global orthopedic implant market will reach $34.9 billion this year.

 

2. The growing elderly population and increased risk for osteoporosis, osteoarthritis, bone injuries and obesity will contribute to the orthopedic device market growth over the next several years. This is particularly true in emerging economies in the Middle East, China, India and other Asian countries.

 

3. Technology advancements — particularly bioabsorbable implants — coupled with the increased success rate of these implants and fixators in emerging markets will be a huge opportunity for investors.

 

4. The orthopedic knee devices accounted for the largest share of the total orthopedic device market revenue in 2012. But, product recalls due to implant loosening, corrosion, wear, manufacturing errors and other factors is expected to have a huge impact on overall market revenue in the future. The report predicts the United States and European markets will see a decline in growth over the next five years.

 

5. The orthopedic hip devices market accounted for the second largest share of the orthopedic device market revenue in 2012. The global market for hip devices will likely grow at a compound annual growth rate of more than 5.9 percent through 2019 due to the high rate of hip fractures and demand for hip replacement procedures, according to the report.

 

6. The orthopedic consumables market — including anchors and staples — is expected to grow over the next five years. The market will likely reach a value of $457 million by 2019. Anchors form a major share of the total orthopedic consumables market, contributing to about 80 percent of the market share in 2019.

 

7. North America has dominated the global orthopedic device market in terms of revenue generation in the past and is expected to maintain this position over the next five years. Factors such as bioabsorbable implants, growing elderly population and increasing obesity in the United States will contribute to North America's leadership in the market.

 

However, healthcare spending growth is expected to slow in North America. The Deloitte Global healthcare outlook report predicts healthcare spending will grow at an average of 4.4 percent, driven in part by the health insurance exchanges. Healthcare reform will likely create more consolidation and pressure to control costs.

 

8. Following behind North America, Europe was the second largest regional market for orthopedic devices in 2012 due to an increasing demand for drug eluting stents and infusion pumps. Europe is also expected to have slow healthcare spending growth due to the residual impact of the recent recession, according to the Deloitte report.

 

9. Over the next five years, the Asia-Pacific market is expected to be the fastest growing region in the world for orthopedic devices. The Deloitte report also places emphasis on healthcare spending in emerging Middle East and Asian marketplaces. Middle Eastern countries are expected to see a 10 percent increase in healthcare spending while China and India are expected to see a 14 percent and 17 percent growth respectively due to fast-growing populations and expanded access to healthcare.

 

Among spinal implants and bone growth substitutes, the Asia Pacific market is expected to reach $7 billion by 2022, according to a Decision Resources Group report.

 

10. The major players in the global hip and knee orthopedic devices market are DePuy Synthes, Zimmer and Stryker. Medtronic, DePuy, Stryker and NuVasive dominate the overall spine device market. There have been huge financial transactions among these companies already this year, and the consolidation is expected to continue in the short term. The biggest transactions from 2014 include Zimmer's $13.4 billion merger with Biomet and Medtronic's $42.9 billion acquisition of Covidien.

 

More Articles on Orthopedic Devices:
Exactech EVP Sells 16k Shares: 5 Things to Know
Will Stryker Make a Move for Smith & Nephew? 5 Key Thoughts
The Volatile Spine Device Market: Mergers, IPOs & International Growth

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